This is the biggest loan granted by a Romanian company, the previous record being RCS&RDS’ credit of 500 million dollars.

The credit contracted by the company owned by billionaire Zoltan Teszari exceeds the loan BCR contracted in 2006 worth 400 million dollars from Bank Austria Creditanstalt, Caylon Bank, Citibank and Westelb, London Branch.

The 400 million loan clinched by BCR unionized and without governmental guarantees, the funds being designed to bank development and for the downpayment of a unionized loan worth 200 million dollars, contracted by BCR in March 2005.

The loan contracted by Petrom will be used to fund the current activities and investments.

“Petrom is in full internal overhaul, which requires major investments. So far, investments were backed up by OMV’s capital raise and by the cash flow geared by our activities. We found this loan as necessary to support the 1.5 billion euros annual investment blueprint. Being provided with financial resources for medium-term by banks in the actual instable context reveals the solid positioning of Petrom”, said Mariana Gheorghe (photo), Petrom’s CEO.

In the past three years and a half, the group’s investments mounted to 3.41 billion euros. The company forecasts for 2008-2010 interval annual investments worth 1.5 billion euros.

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“We have the biggest budget allocated to investments in the entire energy industry; we have well-grounded solutions for the challenges of the sector, and out projects and initiatives will help us improve the safety of the energy supply in Romania”, Mariana Gheorghe added.

The loan was granted by five banks: UniCredit Bank Austria, Credit Agricole Luxemburg, Erste Group Bank, Raiffeisen Zentralbank Osterreich and Societe Generale Bank & Trust.

Petrom will pay annual interest 1.5% higher than the benchmark rate, and most of the amount will be withdrawn in euros and in lei, with the possibility of using in the loan conversed in US dollars.

“The transaction is a milestone in Petrom’s international financial operations, this being the first transaction after privatization. Despite the grim conditions of the international financial markets, the transaction completed successfully, due to the solid relation between Petrom/OMV Group and aforementioned banks”, said Reinhard Pichler, Petrom’s CFO.

Translated by Camelia Oancea